Subway franchise fee

Subway franchising can be said to have joined the list of franchises that are on high demand in the franchising industry today. The business idea is gaining popularity at an alarming rate with people dropping other business ventures to have a feel of the lucrative venture. However, it is important to know the costs involved before making any decision to join the venture. The costs comprise of both the start-up costs as well as the subway franchise fee which is a key requirement for subway franchising. In most cases, a person setting up a subway franchise will be required to pat with $ 16,000 as subway franchise fee. This fee must be paid by the franchisee during the signing of the agreement between the franchisor and franchisee. 

The facilitating company more often than not estimates an initial investment ranging from $ 80,000 to $ 240,000 including an eight percent royalty fee figured on the total sales volume of each store. The gross start-up cost that follows the subway franchise fee is estimated at $ 129,000. There are other charges such as location fee, rent, construction, initial inventory, legal fees, renovation, and equipment installation among other charges that one must pat with to set up a subway franchise. The gross investment estimated above covers 90 days from the onset of subway franchise operations. Therefore, once cleared, one can be sure of a smooth 90-day franchise operation, unless external factors such as economic changes and market saturation set in.   

The cost of operating your franchise business will also depend on the company you choose as your facilitator and the financier for your business. Some companies offer full support relieving you the burden of settling the numerous bills. However, how much you benefit from the facilitating company depends on your readiness to abide by the company’s set rules & regulations. Do not be scared, the subway franchise fee is just, but a small fraction of the total franchise cost.